Which of the Following Is Not a Required Condition for the Distribution

question 200

Multiple Choice

Which of the following is not a required condition for the distribution of a discrete random variable X that can assume values x_i?

• A) 0 \(\le\) p(x_i)\(\le\) 1 for all x_i
• B) \[\sum _ { \text {all } x _ { 1 } } p \left( x _ { i } \right) = 1\]
• C) p(x_i)> 1 for all x_i
• D) All of these choices are true.

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Definitions:

Utility Function

A mathematical representation that ranks consumer preferences or satisfaction levels from consuming various goods or services.

Wealth

The total value of all financial and non-financial assets owned by an individual or entity, minus any debts owed.

Diminishing Marginal Utility

A principle stating that as a person increases consumption of a product, there is a decline in the added satisfaction that comes from consuming one additional unit.

Risk-Averse

Describes investors or consumers who prioritize minimizing the risk of loss over potentially achieving higher returns.